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In the 100 days since Gerald Hassell was named chief executive and chairman of the world’s largest custodian, BNY Mellon has vigorously defended itself against accusations of wrongdoing in foreign exchange activities, ridden out a difficult third quarter in the markets, and is now facing a potential downgrade by credit ratings agency Moody’s.

The custodian, which has $25.9 trillion in assets under custody, welcomed Hassell to the position on August 31. The firm veteran, who has over 35 years’ experience at the bank, replaced Robert Kelly, who had reached a mutual agreement with the board of directors to step down as chief executive. In a statement BNY Mellon cited the move as “due to differences in approach to managing the company”.

However, under Hassell’s leadership, the custodian has faced a difficult few months. On Friday credit ratings agency Moody’s revealed that the bank was under review for downgrade.

In a statement Moody’s said: “Moody's will review the risk profile and earnings prospects of BNY Mellon considering the more hostile operating environment now facing the bank.” The bank is rated Aa2, making it one of the highest rated banks globally.

Moody’s said the review will focus in part on BNY Mellon’s capital plans. It said: “The focus will be on capital generation considering the ongoing margin compression resulting from a low rate environment, lower asset values and potential litigation costs or contingent liabilities stemming from its custodian and asset management businesses.”

The bank is defending itself against a continued saga of foreign exchange lawsuit threats from a number of US pension funds. The custodian is accused of overcharging clients in currency trades. In November, The Wall Street Journal reported that the custodian was facing civil suits seeking a total of more than $2bn in damages.

At the firm’s investor day, held on November 14, Hassell said the lawsuits “may take some time to resolve”, but that the company will not be “coerced into paying huge sums for no apparent wrongdoing”.

However, the custodian has seen a number of positives over the past few months. It fared well compared with rivals in the third quarter, with assets under custody dropping only 2% – rival State Street saw assets under custody drop by 6% and JP Morgan Worldwide Securities Services by 4%.

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BNY Mellon has also expanded its wealth management arm with a string of appointments to the division and the expansion of its footprint both domestically and globally. The division opened a wealth management office in Washington DC in November.

And the custodian has continued to find favour with firms when it comes to custody appointments and mandates.

It has been successful in China, with a number of appointments as the global custodian for the some of the country’s qualified domestic institutional investors funds. Other big mandates include providing middle- and back-office outsourcing services for about $125bn of assets for Bridgewater Associates, and an appointment by clearing house LCH.Clearnet as an additional US collateral custodian.